Crotty signals timeout on arena

The Orange mayor calls the city's plans to vote on a deal with the Magic hasty.

After more than a year of talking about building a new arena for the Orlando Magic, Mayor Buddy Dyer is ready to seal a deal for the most expensive project in the city's history.

But Orange County Mayor Rich Crotty wants to put the brakes on, saying it's premature for Dyer to sign a deal with the National Basketball Association team. Crotty doesn't have any authority to stop a vote of the Orlando City Council, scheduled for Thursday, but Dyer can't ignore the county politician's concerns because he controls the hotel taxes needed to help pay for it.

"It would seem premature for the city of Orlando to finalize a term sheet with the Magic without taking our concerns under consideration, given the significant funding we are to provide for the arena," Crotty said.

Among other concerns, Crotty said he wants to ensure that county taxpayers don't end up on the hook for ongoing operational subsidies once the arena is built or costly upgrades to the facility years in the future.

Dyer has asked the City Council to approve an agreement that lays out how the city and the Magic will share the costs and profits of the planned $480 million events center. It's the first of three arts and sports projects Dyer wants for Orlando -- including a performing-arts center and renovated Florida Citrus Bowl -- with a combined price tag of $1 billion.

The vote comes amid tense negotiations between the city and the county over funding for the three projects. On Tuesday, Crotty said he is optimistic the city and county can work out a fair deal, and pledged to step up negotiations.

At the same time, he said the city shouldn't vote on a deal with the Magic until county officials have had a chance to study the details and share their concerns.

Dyer seemed frustrated by Crotty's criticism, and said that county leaders have repeatedly said they won't OK funding for the three arts and sports venues until his administration finalizes agreements with the Magic, arts boosters and Florida Citrus Sports.

Still, Dyer said he would try to address the county's questions. He said he was pleased that Crotty has told his financial experts to meet more frequently with the city's negotiators, a problem he blamed for slowing the pace of negotiations.

"The county is kind of like a limited partner, but they're putting in an awful lot of money, and we want to assuage their concerns," Dyer said. "We need to kick it into high gear and get this thing done."

Under the terms of the agreement, the Magic would agree to sign a 25-year lease with a five-year renewal option.

The Magic will pay $62 million toward the construction, buy or find investors to buy $100 million in bonds to help with the financing and agree to cover cost overruns. The team also will pay the city $1.75 million a year for naming rights, suites and advertising revenue, an amount that will increase by 3 percent a year.

The agreement also details the features that would be included: about 18,500 seats, 52 luxury suites, 60 premium and club seats, restaurants and concessions, broadcast facilities, an ice-hockey floor and more.

The city would pay $100 million toward land and infrastructure, and the county would pay $270 million in hotel tax bonds. An additional $30 million in state sales tax and $18 million in interest from the bonds brings the total price tag to $480 million.

"We want to tie the Magic to these terms," Dyer said. "Everything is in there, from soup to nuts."

County negotiators say they fear that the city will lock in terms that county commissioners would never agree to, and force both local governments into a more difficult bargaining position in trying to renegotiate those points later on.

City Commissioner Phil Diamond said it's one of the most important proposals to ever come before the council -- and that he thinks it's a bad deal. The city should demand a greater contribution from the Magic, money that could be spent on services for Orlando taxpayers, he said.